Now that President Donald Trump has signed a record-breaking $2.2 trillion stimulus bill aimed at buffering economic fallout from the coronavirus pandemic, politicians, financial experts, workers advocates and others are weighing in on what the relief package means for Southern California.

The fact that the largest stimulus bill in modern American history passed with unanimous bipartisan support at a time of hyperpartisan American politics speaks to the magnitude of the crisis, according to Kevin Wallsten, a political science professor at Cal State Long Beach.

“The challenge is unprecedented, so the stimulus must also be unprecedented,” he said.

Locally, officials from both sides of the aisle are praising the bill for including cash payments to most adults, dramatically expanding unemployment benefits, offering aid to small businesses and boosting healthcare providers. And many are touting relief directed at hard-hit industries, such as airlines, that employ a lot of people in Southern California.

“Keeping American families healthy, both physically and financially, is the overarching objective of this historic legislation,” said Rep. Ken Calvert, R-Corona, who represents the Inland Empire’s 42nd District. “(The stimulus) supports individuals across our nation who are stepping up in so many different ways to meet the demands presented by this moment.”

Still, everyone acknowledges there’s much more work to be done, with local lawmakers already making plans for future legislation while interest groups offer varied views about what’s still needed to keep people afloat.

Relief coming

One of the most direct boosts for Southern Californians will be payments of $1,200 cash, set to start coming to most taxpaying adults within three weeks to help them pay their bills. In the meantime, the bill freezes federal student loans until Sept. 30 while some pending requirements, such as Real IDs, are delayed. There also are protections against mortgage foreclosures and evictions for renters. (State law now goes even further, banning evictions for 60 days.)

The bill also allocates more than $375 billion to small business relief, including $349 billion in loans that small businesses won’t have to repay if they don’t lay off their employees.

Expanding unemployment benefits by giving people an extra $600 a week for four months and providing an extra 13 weeks of compensation was something Democrats fought to include in the bill. Those benefits also extend to independent contractors and gig economy workers, such as rideshare drivers, construction workers and janitors, thanks in part to a push from Democratic Rep. Norma Torres of Pomona.

“It was vital to me that this package help every single American – including contract workers and gig economy workers whose jobs are among the first to end during an economic downturn,” Torres added.

Roughly $200 billion will be directed to hospitals, health systems and health research. That includes expanding funding for personal protective equipment such as masks and gowns needed by health care workers, an issue that Rep. Harley Rouda, D-Laguna Beach, described as one of the biggest concerns for his constituents in the 48th District.

The bill also includes more than $100 billion in additional emergency appropriations. Of that, California is set to get $3.75 billion for transit agencies that have lost riders, $237 million to help the homeless, $348 million for child care, $75 million to help low-income families pay heating and cooling bills, $96.2 million to get protective equipment for law enforcement and $36.3 million to help elections officials take precautions for the coronavirus.

Questions linger

While both Democrats and Republicans got many of their key proposals included in the relief package, local leaders remain concerned about some items that made it through.

The single largest allocation is $500 billion, pushed by the GOP, that the Treasury Department will use to make loans and investments for distressed businesses. While Democrats initially labeled it a potential slush fund, the final version of the bill says companies can’t use that money for stock buy-backs or golden parachutes for executives. Democrats also fought for a special panel to oversee the funds. And they ensured money can’t go to businesses owned by key figures in the Trump administration, members of congress or their family members.

But Democratic Rep. Katie Porter, a former consumer protection attorney who represents central Orange County’s 45th District, wishes congress would have put more limits on how those funds could be used. And she’s concerned there isn’t enough real-time oversight, pointing out that Treasury Secretary Steven Mnuchin can start approving corporate loans from that fund immediately while the first report from the review panel isn’t due for 30 days.

“The goal is get to help to businesses quickly,” she said. “But we also want to make sure that we are safeguarding our taxpayer resources here.”

On the other side of the aisle, Republicans point to line items that Democrats originally tried to push through that the GOP didn’t believe had anything to do with the coronavirus. One would have required any airline getting bailout money to meet certain environmental standards.

While most of that so-called pork was dropped before the bill went to a vote, Randall Avila, executive director of the Republican Party of Orange County, said his members were frustrated to see the final version still included allocations such as $25 million for the Kennedy Center in Washington, D.C.

Democrats argue that the nonprofit arts center, which is run by the federal government, needs the funds to keep paying employees, utility bills and other costs to ensure it stays solvent through the pandemic.

Another question is whether any local cities other than Los Angeles will see much help from the bill’s $150 billion State and Local Coronavirus Relief Fund, which figures to be vital to keep local services going as tax revenues screech to a halt. But only cities with populations above 500,000 can apply directly to the federal government for program funds, while others have to request money through Sacramento. It’s estimated that California will get some $15.3 billion from that fund.

Rep. Alan Lowenthal, D-Long Beach, said the rules leave a big question about whether Long Beach, Garden Grove or any other cities in his 47th District will see a share of that money.

Rouda also flagged that rule, saying “arbitrary population stipulations ensure that not a single Orange County city will qualify for direct local funding assistance.”

Another concern for Rouda is that the $1,200 cash payments weren’t adjusted to match the regional cost of living.

“We know that in Orange County, $1,200 does not amount to much,” he said.

What comes next?

Lawmakers are already eyeing two more federal relief bills tied to the coronavirus. One is expected soon, to address more critical health and economic needs. The final bill is expected to be an economic stimulus, with substantial money for infrastructure projects that will come after the virus has peaked.

Standalone bills are also in the works. For example, Rouda said he’ll push legislation that would let retired doctors and nurses come back to help behind the scenes without jeopardizing their Social Security benefits.

Lowenthal wants to see financial help directed at port workers. He tried to carve out funding in the current relief package, but now hopes money for ports can be included in a future bill.

“We know that we have more work to do, including helping our undocumented community,” said Rep. Linda Sanchez, a Democrat who’s 38th District includes southeast Los Angeles County and a sliver of Orange county.

Ada Briceño, chair of the Orange County Democratic Party, also is pushing internet access for people now trying to work or school their kids remotely, rent deferral programs and a comprehensive plan to protect the homeless. And she hopes to see healthcare issues addressed, noting that many people have lost insurance benefits as they’ve lost jobs in recent weeks.

Laura Gonzalez, a finance professor at Cal State Long Beach, said she’s interested in seeing banks be required to drop ATM fees, lower minimum balances required in savings accounts and lower other fees that affect lower-income people.

In the meantime, local leaders all emphasized the need to listen to health experts and to follow physical distancing orders as a way to flatten the still-rising curve on coronavirus cases.

“The interesting thing is that all of this spending will probably mean very little if the virus can’t be contained in some way,” Wallstenn said. “The assumption underlying this bill is that Americans will need relatively short term relief while we limit the spread of the virus. If that doesn’t happen, what comes next is really anyone’s guess.”

Brooke Edwards Staggs covers state and federal politics through an Orange County lens, plus the politics, business and culture of cannabis in California. Journalism has led Staggs to a manhunt in Las Vegas, a zero gravity flight over Queens and a fishing village in Ghana. The Big Bear native is addicted to education. She earned her bachelors degree in English from California Baptist University, then got her master's in education as she taught high school English in the Inland Empire. After four years in the classroom, she left in 2006 to be a student again herself, earning a masters degree in journalism from New York University while interning and freelancing for a variety of publications. She sees journalism as another form of teaching, helping readers make informed decisions and better understand the world around them. Staggs spent five years as a staff writer then city editor at the Daily Press in Victorville. She joined the Orange County Register in January 2013, covering several Orange County communities before taking on the marijuana beat in February 2016 and the politics beat in April 2019. That work has earned her first-place wins in the Best of the West, California Journalism Awards and Orange County Press Club competitions. On occasion, she also teaches community college and ghostwrites nonfiction books. Staggs loves dancing and new adventures. She hates water slides and injustice. If she doesn’t get right back to you, there’s a good chance she’s sitting with her DJ husband on a plane or train or boat destined for somewhere – anywhere – they’ve never been.

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